A comprehensive car insurance policy will have many coverage categories. Below you find the categories of liability coverage, collision coverage and personal injury protective coverage. These are all different components that combine to form a comprehensive insurance policy. Knowing as much about your automobile insurance policy as you can and having a good insurance agent will virtually eliminate the risk of owning and using an automobile. In addition to explaining what the types of coverage are for, we will also discuss the amount of financial coverage that you should consider.
1) Personal Injury Protection Coverage
One available type of coverage is Personal Injury Protection (PIP) Coverage. This is not available in all states. Generally states that have no-fault car insurance laws do not allow you to buy PIP. Generally, this coverage provides medical (or funeral) expenses for the driver or other people in the vehicle that’s insured in the event of an accident. It also covers pedestrians hit by the insured vehicle. PIP is different from state to state so you will have to familiarize yourself with your state’s laws.
2) Bodily Injury Liability Insurance Coverage
Bodily Injury Liability Coverage covers the medical costs and funeral expenses for anybody injured or killed in an accident for which you (or your vehicle, if you weren’t driving it) when you’re at fault. Bodily Injury Liability coverage will cover injuries to occupants in your vehicle if the accident is deemed to be your fault. However, this coverage doesn’t extend to you personally, or any driver listed on your policy. Your state mandates a certain coverage level you are required to have but it is important to realize that that’s the minimum coverage.
What’s a good amount of Bodily Injury Insurance should you get? Your insurance agent can provide you with advice on this but you may like to have more than the minimums. Chrysleronnicholasville.net says suppose you have coverage that covers up to $20,000 and you get into an accident and somebody wins a $50,000 judgement against you. In this case, the insurance company would owe $20,000 and you would be liable for the rest. That could mean having your property taken away and sold, work earnings garnished and more.
3) Collision Coverage
Collision Coverage covers you for damage to your car if it hits an object or other vehicle. This is designed to get your vehicle repaired, or replaced if your car is totaled.
How much Collision Coverage should you get? If you don’t have a loan on your vehicle and it’s an old-ish model, you might want to consider just covering it to the blue book value. If the car’s value is low, you may want to consider totally skipping this coverage. That’s because if your vehicle was totaled (more damage done than the vehicle is worth) the insurance company would pay you up to the car’s blue book value after your deductible is subtracted. Unlike liability insurance, this is not mandated by law, however, if you have a loan on your vehicle, or if it is leased, you will almost certainly have to get this coverage.
There are other kinds of coverage as well
In addition to the above-mentioned categories, there are other types of coverage (roadside assistance, towing, etc.) that you can get with your automobile insurance. Your local insurance agent can advise you further.
Article Courtesy: Chrysler of Nicholasville